Dynegy loss shakes district

Friday

Mar 8, 2013 at 2:00 AM

MARLBORO — The financial crisis facing the Marlboro School District could lead to a loss of 32 teachers, in addition to 31½ other jobs, Superintendent Ray Castellani said Thursday night at a board meeting. He outlined the grim picture in the aftermath of the district's largest taxpayer, Dynegy, going through bankruptcy and selling off its power plants.

MICHAEL RANDALL

MARLBORO — The financial crisis facing the Marlboro School District could lead to a loss of 32 teachers, in addition to 31½ other jobs, Superintendent Ray Castellani said Thursday night at a board meeting. He outlined the grim picture in the aftermath of the district's largest taxpayer, Dynegy, going through bankruptcy and selling off its power plants.

The crisis has also prompted district officials to propose closing two of its three elementary schools: Milton and Middle Hope.

Castellani said the district did, in fact, plan for the expected changes at the Dynegy site, and was prepared to absorb as much as a 50 percent or $8.6 million gap in tax revenue, although that might have hurt some student programs.

Castelini said if the current year's budget of $52.9 million was rolled over with only contractual increases and inflation adjustments, next year's budget would be $56.2 million.

Just after Thursday night's school meeting began, between 100 and 200 members of Marlboro Community Concerns walked in to join those already there.

They carried signs telling of their concerns about the district's financial plight.

A spokesman for the taxpayers' group, Bill Bell, explained what they're hoping for before the meeting began: balance.

"We're looking for ways to not have to cut all the programs, without putting everybody out of their homes" by raising taxes too much, Bell said.

Explaining the root of the financial problems, Castellani, said Dynegy is selling the plants to two different owners with "two very different plans." While the Roseton plant is being bought by a company that, presumably, will continue to operate it, the Danskammer plant is being bought by a company that plans to dismantle it and sell off the parts.

That, Castellani said, will reduce the value of the site to that of the undeveloped land and leave the district with a $10 million to $11 million gap in revenue.

Assemblyman Frank Skartados, D-Milton, told residents and district officials he's working on possible solutions in Albany, including getting Marlboro's wealth data adjusted to reflect the Dynegy situation, which could free up more state aid.